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The South African Broadcasting Corporation (SABC) presented its 2019/20 annual report in parliament on Tuesday (Nov 17), showing a further decline in people paying television licenses.
The broadcaster said television licensing revenue fell 18% year-on-year to 791 million rand due to the delay in the use of debt collection agencies in this period.
“This resulted in only 24% of total license fees billed as revenue, compared to 31% for the year ended March 31, 2019.
“As part of a general policy review, the SABC is finalizing proposals for the government on the future collection of a tax on public broadcasting, taking into account the different opinions of the public on this issue, as well as international best practices” , said.
New ways to collect
In a opinion piece Posted in early November, SABC’s television licensing director Sylvia Tladi said changes need to be made to South Africa’s broadcasting regulations, including an expanded definition of ‘television’ or now, a broadcast device.
Some of the devices that are being considered under this expanded definition include:
- Laptops;
- Tablets;
- IPTV;
- Internet;
- Decoders;
- Decoders;
- Smartphones.
Tladi said that these devices, which have given rise to new media platforms and content broadcast channels, have a direct impact on television licensing legislation.
He said the SABC filing also calls for a revised television license fee system and changes in legislation regarding the public funding strategies provided for by television licenses.
“To ensure maximum compliance with the legislative requirements related to the payment of television license fees, the SABC proposes that the law impose stricter obligations on all interested parties or relevant actors because ‘traditional’ television is no longer the only means of receiving a television broadcast.
“Therefore, to manage compliance with the payment of license fees, the SABC believes that other entities should be obliged to report the sale, lease or use of these ‘televisions’ or ‘display devices’.
Shadowy figures
The drop in TV license revenue combined with the loss of advertising revenue during the coronavirus lockdown meant that total revenue decreased 12% year-on-year to R5.7 billion.
At the end of March 2020, the Corporation reported a net loss of R511 million, a decrease of 6% compared to the previous year, but a 20% better performance compared to budget.
Other key financial data from the report shows:
- A 28% decrease in content investment and a 16% decrease in other operating expenses. Despite this, the cost-income ratio of 110%;
- Total expenses were under budget by 23% or R1.8 billion;
- The long-pending settlement of creditors reduced business accounts and other accounts payable by nearly 50%, and creditor paydays closed the year at 51 days, which was 143 days as of March 31, 2019 ;
- Cash available as of March 31, 2020 amounted to R $ 100 million, a notable improvement over the R73 million as of March 31, 2019;
- The issuer reported a decrease in annual irregular spending of 40%, amounting to R202 million, compared to R336 million for the year ended March 31, 2019;
- Unsuccessful and wasteful expenses from year to year decreased by 87% to R27 million, of which R26 million incurred interest and penalties due to late payments caused by cash flow restrictions.
“The SABC has taken bold and decisive steps in the implementation of the approved restructuring plan,” he said.
“Despite difficult economic conditions, SABC remains on track to achieve financial sustainability and will continue to fulfill its public mandate to educate, entertain and inform the nation for generations to come.”
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